Refi on Private Student Loan... Options?

Creditaddict · ‎10-01-2013

Is it really even possible to get these things refinanced?

Current one is FIXED so that is the good part, it doesn't "need" to be done but would be nice to take it out a little longer and bring the payment down a bit and put it towards the credit card debt.

Current loan is about $34k (my partners)

He was thinking Wells Fargo (They go up to $30k) but with recent closure of his credit card and my hatred towards them, I can't imagine!!

Any banks out there actually LOVE a Private Student Loan and try to win a refinance from you??

SCF · ‎10-01-2013

With the problems in the economy and growing student loan debt load and default rates, the market has basically dropped out of private loans compared to where it was 5-10 years ago. You may find a handful of lenders doing re-fis or consolidations, but you'll need good credit and income to get the best rates. You can shop around, but unless you have quite a high fixed rate, I doubt you'll find a better deal (most private loans I've heard about have variable rates lately).

Simply827 · ‎10-03-2013

@Creditaddict wrote:
Is it really even possible to get these things refinanced?
Current one is FIXED so that is the good part, it doesn't "need" to be done but would be nice to take it out a little longer and bring the payment down a bit and put it towards the credit card debt.
Current loan is about $34k (my partners)
He was thinking Wells Fargo (They go up to $30k) but with recent closure of his credit card and my hatred towards them, I can't imagine!!

Any banks out there actually LOVE a Private Student Loan and try to win a refinance from you??

If I were you, I'd want to get rid of the private loan as soon as possible, not stretch it out. It's possible that the loan has a lower interest rate than credit cards, but I consider private loans to be much more dangerous. If you ever get into financial trouble, your private loan lender won't care and likely won't want to work with you. The loan also can't be discharged in bankrupcy.

Did you do the math on how much interest you'll pay over how many years on a 30k loan? WF also often wants cosigners for their student loans? Are you willing to take financial responsibility for your partner's debt?

Please think this over carefully. I think you're about to make a huge mistake.

Creditaddict · ‎10-03-2013

Well one positive thing to update i upon actually getting logged into partners account and checking a statement his interest rate is under 3.5%!!!

I WAS LIKE WHAT!!!

Refi, NO WAY!

now for anyone looking when I googled some stuff I did find a not for profit credit union that specializes in refinancing or giving private student loans starting at the 4.5% range... it was called CU something student maybe but the only problem is your school regardless in school still or not has to be part of there program... my partners was not because he went to some small private one.... but could be great option for others (oh FIXED rate too!)